Matter of concern: money in inventory, longer promised delivery time and expensive warehouse</li></li></ul><li>Q1: Long term decision manager must take for effectively running his company?<br /><ul><li>Decision to reduce cost & improve quality
Use mix of different layout for Custom & standard line product.</li></ul>Product layout for standard line product: Its usually used for large volume product<br />Process layout for Custom products :used when there is diversified products using common operations, varying volumes, varying rate of output<br /><ul><li>Increase number of craftsman : Do this by improving forecast technique of demand
Management of resources: Manpower , raw material
More Emphasis on automating the production process
Employ able generalists with a range of skills who will be needed eventually for promotion</li></li></ul><li>Q2: How did Sales & marketing affect operations when selling standard pieces to retail outlet ?<br /> There are four aspects of Sales & marketing affect on operations<br /><ul><li>Time : Delivery made after time will result in stock-out
Quality : Customer expect product to be of high quality and reliability
Cost : Customer demands lowest possible cost with maximum satisfaction
Adaptability(flexible): It provides customer with more choices</li></li></ul><li>Q3: Affect of producing more standard furniture on company’s financial structure<br /><ul><li>Will require more inventory to satisfy increasing demand, otherwise may result in loss of market demand
Sales & revenue has increased as demand for custom & standard furniture was rising
Longer delivery time would have resulted in loss of customer.
Gross Margin will narrow due to above reasons</li></li></ul><li>Q4: How to avoid the current issues faced by manager?<br /><ul><li>Marketing analysis and working out the marketing segmentation on the potential demand for the standard line products should have done
Finance: Conduct a financial feasibility study on the decisions of investing or leasing that make sense of monetary value. This includes profitable study, technology, layout redesign, capacity expansion and inventory levels</li></li></ul><li>Q4: Continue…<br /><ul><li>Distribution- Should focus on outsource the non-core business activities if it is non-profitable. It is costly by not understanding the multi distribution network in standard line delivery (Multiple drop off points through retail channel sales)
Operations: Check for right layout and work flow process in the company. Use hybrid model to handle the flexibility in the product nature, make both the production line being able to configure standard and customized so to reduce setup and changeover time and cope with the demands. </li></li></ul><li>Q5: Make to stock vs Make to Order ?<br /><ul><li>Manufacturing strategy difference for make to stock and made to order is as under</li></li></ul><li>Q6: What is 60% of volume & 75% of $ value ?<br /><ul><li>In this case 60% volume indicate 60% of total sales in terms of volume .(no of units).
75% of dollar value means -75% of total Revenue (in terms of dollars)
Calculating $(Dollar) per unit ratioCustom: Standard(75/60) : (25/40) 1.25: 0.625 2:1 </li></li></ul><li>Q:7 What is Purpose of General purpose Machine, SPM, Flexible machine ?<br /><ul><li>GPM : These machines can be used for general production operations for example lathe machines, cutting machines.
SPM: These machines are made for specific operations job. Can not be used for any other production operation. These are customized as per the requirement of operations.
Flexible machines are which can be changed as per the requirement of operation process.
Automated machines- This machines are completely automatic and does not need any manual intervention in the process.</li></li></ul><li>Other types of Machines<br /><ul><li>CNC machines-These machines are called computed Numerically controlled machines. These machines are operated by programmed commands encoded on a storage medium (as opposed to manually controlled hand wheels or leavers. In modern CNC end to end component design is highly automated using CAD/CAM programs.
Semi automated machines –these machines requires partial manual process to operate and partially automatic.
Manual machines- operations of these machines are totally manual.</li></li></ul><li>www.creativeconcept.com<br />Thank You <br />
Backup Slides<br /><ul><li>Only the properlylaid out factory can ensure the smooth and rapidmovement of material, from the raw material stage tothe end product stage.
PRODUCT LAYOUT </li></ul> Product layouts are found in flow shops (repetitive assembly and process or continuous flow industries). Flow shops produce high-volume, highly standardized products that require highly standardized, repetitive processes. In a product layout, resources are arranged sequentially, based on the routing of the products.<br /><ul><li>Process layouts are found primarily in job shops, or firms that produce customized, low-volume products that may require different processing requirements and sequences of operations. Process layouts are facility configurations in which operations of a similar nature or function are grouped together.</li>